Latest news with #SupplyControlRegulations
Daily Express
a day ago
- Business
- Daily Express
LPG subsidies for ‘rakyat prices' traders
Published on: Tuesday, July 01, 2025 Published on: Tue, Jul 01, 2025 By: Crystal E Hermenegildus Text Size: Armizan also revealed that last year alone, the government spent RM3.4 billion on LPG subsidies, a figure he said is significant and equivalent to the cost of building 35 new schools. Kota Kinabalu: The Ministry of Domestic Trade and Cost of Living (KPDN) is committed to ensuring that subsidised liquefied petroleum gas (LPG) continues to benefit micro and small food and beverage (F&B) traders. Its Minister Datuk Armizan Mohd Ali said amendments to the Supply Control Regulations (PPKB) 2021 are being proposed to formally recognise the needs of micro and small F&B operators many of whom rely on LPG to run their daily operations. 'Food and beverage traders should not worry. As long as they offer reasonably priced food and services, they will continue to benefit from the LPG subsidy,' Armizan said this during a press conference at Sabah International Convention Centre (SICC), Monday. Under the current PPKB 2021, any commercial use of LPG exceeding 42kg requires a control goods permit, effectively limiting access to subsidised LPG for small businesses. The new amendment seeks to ease these restrictions and better reflect the operational realities of such traders. 'In practice, many eateries use more than 42kg at a time — some use five cylinders at once and also need to keep spare stock. The government understands this and is willing to allow usage beyond the current limit, but we must implement proper control mechanisms to prevent abuse,' said Armizan. He stressed that while domestic users and small F&B operators would remain eligible for the subsidy, the government cannot afford for subsidised LPG to be misused. 'We are not here to subsidise lifestyle costs. We are here to ease the cost of living for the people,' he said, citing examples of some establishments charging RM30 for fried rice or RM25 for chicken rice. 'That's not the rakyat's price. It's a lifestyle price.' Armizan also revealed that last year alone, the government spent RM3.4 billion on LPG subsidies, a figure he said is significant and equivalent to the cost of building 35 new schools. 'Is it right to let this money be used indiscriminately? The public needs to know that this isn't a small amount,' he said. To ensure fair implementation, Armizan said the Ministry would gather feedback from industry stakeholders and other relevant ministries, such as the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) and the Ministry of Rural and Regional Development (KKDW), before finalising the amended regulation. A technical committee chaired by the Ministry's Secretary-General has also been formed to define and monitor the 'people's price' threshold and to design a subsidy control mechanism that ensures accountability. 'The LPG subsidy must be targeted, controlled and safeguarded. Our priority is to protect the rakyat, not to subsidise profit margins or lifestyle excesses,' Armizan said. Stakeholders unable to attend the engagement sessions are encouraged to submit their proposals and memoranda before the conclusion of the Ops Gasak enforcement campaign on October 31 2025. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Borneo Post
2 days ago
- Business
- Borneo Post
KPDN to amend LPG rules, protect traders, consumers in Sabah
Armizan (third left) chairing the engagement session with food and beverage traders' associations in Sabah on Monday. – Bernama photo KOTA KINABALU (June 30): The Ministry of Domestic Trade and Cost of Living (KPDN) is stepping up efforts to safeguard the interests of micro and small traders in Sabah's food and beverage sector through proposed amendments to the Supply Control Regulations (Amendment) 2021. Speaking at an engagement session with food and beverage traders' associations in Sabah on Monday, minister Datuk Armizan Mohd Ali said the session aimed to gather feedback to ensure fair and effective implementation of the amendments. 'Unlike the existing regulations, which allow the use of subsidised LPG cylinders not exceeding 42 kilograms at any one time, the new amendment will take into account the specific needs of micro and small traders,' he said. Armizan assured that food and beverage traders offering reasonably priced services will continue to be eligible for subsidised LPG, adding that the amendment is crucial to strengthen control mechanisms and prevent subsidy leakages due to misuse and smuggling. 'We welcome the views of all stakeholders, including business associations, to submit their recommendations and proposals to the ministry,' he said, noting that engagement sessions will continue statewide. The new provisions are expected to be implemented after the OPS GASAK operation period ends. In a separate move to shield consumers from unreasonable price hikes, Armizan announced that OPS KESAN 4.0 will begin on 1 July 2025, coinciding with the revised Sales Tax rate and expanded scope of the Service Tax (SST). The operation will be enforced under the Price Control and Anti-Profiteering Act (AKHAP) 2011 to prevent traders from exploiting the changes to raise prices unfairly. 'Our focus is to ensure that traders at all levels do not take advantage of the situation. Unjustified price hikes are a violation of the law,' Armizan warned. He said enforcement will cover all goods and services affected by the SST changes, as well as essential items not involved in the tax revision. Daily price monitoring will be conducted by Price Monitoring Officers (PPH) to track changes before and after the SST adjustments. The ministry will also enhance cooperation with other government agencies and promote public participation through the KITA GEMPUR initiative to combat manipulation and leakages. Armizan urged the public to report any suspicious price increases. Complaint channels include: Enforcement Command Centre: 03-8882 6245 / 6088, WhatsApp: 012-665 4292, e-Complaint Portal: Call Centre: 1-800-886-800 and Mobile App: Ez ADU KPDN 'KPDN will not hesitate to take stern action. Individuals found guilty of profiteering can be fined up to RM100,000 or jailed for three years, or both. Companies may face fines of up to RM500,000,' he said.
The Star
2 days ago
- Business
- The Star
Small-time food traders can continue using subsidised gas, says Armizan
KOTA KINABALU: The Domestic Trade and Cost of Living Ministry says that micro and small traders in the food and beverage sector can continue to use subsidised LPG cylinders as long as they offer affordable prices to consumers. Its minister Datuk Armizan Mohd Ali said that food and beverage vendors who offer their wares at reasonable prices would continue to be guaranteed access to LPG subsidies. He said this is among aspects considered when amending the Supply Control Regulations (Amendment) 2021. Engagement sessions to gather feedback and views on the proposal will be held starting Tuesday (July 1) until Ops Gasak concludes on Oct 31. He said the previous regulations only allowed less than 42kg of subsidised LPG at any given time but the implemented amendment would take into account the needs of food traders. "We will also look at the control mechanism to ensure that there are no leakages for this subsidy, especially related to smuggling and misappropriation," he said during a press conference here on Monday (June 30). Earlier, Armizan attended an engagement session involving food and beverage traders' associations in Sabah to gather their views and feedback on the proposed amendments to the regulations. He added that the ministry had also established a technical committee to review appropriate "rakyat (-friendly) prices" to be imposed on consumers, taking into account basic cost of living data to be released by the Statistics Department as a guide. – Bernama
The Star
20-06-2025
- Business
- The Star
Fuziah: Gas tank ops to collect data, not to penalise
JOHOR BARU: No enforcement action will be taken under Ops Gasak against micro businesses such as self-service laundromats and small eateries until the end of the operation, says the Domestic Trade and Cost of Living Ministry. This follows confusion and concern among traders who rely on subsidised liquefied petroleum gas (LPG) in their operations. Deputy Minister Fuziah Salleh (pic) said the presence of enforcement officers at premises was solely to collect data and feedback, which will later be presented to the Cabinet as part of a review of the Supply Control Regulations (Amendment) 2021. 'I want to stress that no action will be taken against small food stalls, roadside traders or self-service laundromats until Ops Gasak concludes on Oct 31. 'When our enforcement team is on the ground, they are mainly there to gather data. Even stakeholder engagement sessions are part of our process to understand LPG usage and its implications for end users. 'The engagement session is valuable because it gives traders a chance to ask questions and raise concerns about licensing,' Fuziah said at a press conference after attending a meeting with Johor LPG industry stakeholders held at a hotel here yesterday. She said the reason Ops Gasak was enforced since May 1 was because subsidised LPG was being misused by some ineligible commercial sectors, particularly hotels. 'I personally visited hotel laundry areas where subsidised gas was used to wash towels and bedsheets. This is an example of leakage. 'We guarantee that enforcement will not be taken if subsidised LPG is used by micro traders until Oct 31. Once we complete the data collection, it will be tabled as recommendations for policy consideration,' Fuziah said. She added that the Cabinet had agreed to revisit the amendments to the Supply Control Regulations, but no final decision has been made. 'So again, I want to emphasise – no action will be taken against stalls, roadside traders or laundromats until Ops Gasak ends, and a clearer direction is determined,' she said. However, Fuziah reminded business owners that those storing more than three cylinders of subsidised LPG must still apply for a permit for safety reasons. Ops Gasak was launched on May 1 to tackle the misuse and diversion of subsidised LPG cylinders, especially involving medium- and large-scale industry players.
The Star
19-06-2025
- Business
- The Star
No enforcement actions for micro businesses under Ops Gasak, assures Dr Fuziah
JOHOR BARU: The Domestic Trade and Cost of Living Ministry has assured that no enforcement action will be taken under Ops Gasak against micro businesses, such as self-service laundromats and small eateries. Deputy Minister Dr Fuziah Salleh stated that the clarification was made in response to the confusion and concern expressed by small traders who depend on subsidised liquefied petroleum gas (LPG) for their operations. She said the presence of the ministry's enforcement officers on the premises was solely to collect data and feedback, which would later be presented to the Cabinet as part of a review of the Supply Control Regulations (Amendment) 2021. 'I want to stress that no action will be taken against small food stalls, roadside eateries or self-service laundromats until Ops Gasak concludes on Oct 31. 'When our enforcement team is on the ground, they are mainly there to gather data. Even stakeholder engagement sessions are part of our process to understand LPG usage and its implications for end users,' she added. She said this in a press conference after attending a meeting with Johor LPG industry stakeholders held at a hotel here on Thursday (June 19). Fuziah said the ministry has been carrying out Ops Gasak since May 1 because subsidised LPG has been misused by certain ineligible commercial sectors, particularly hotels. 'I personally visited hotel laundry areas where subsidised gas was used to wash towels and bedsheets. This is an example of leakage. 'We can guarantee that enforcement action will not be taken if micro traders use subsidised LPG until Oct 31. Once we complete data collection, it will be tabled as recommendations for policy consideration,' she said. She added that the Cabinet has agreed to revisit the amendments to the Supply Control Regulations, but no final decision has been made. Fuziah also reminded business owners that those storing more than three cylinders of subsidised LPG must apply for a permit for safety reasons. 'Previously, under the amended Act, permit holders were required to use non-subsidised gas. That is why a review is necessary,' she added. She said the ministry was now reviewing the system to ensure traders still apply for permits, but would not be forced to switch to unsubsidised gas. 'The engagement is valuable because it gave traders a chance to ask questions and raise concerns about licensing. These permits are vital to ensure safety and to prevent leakage of subsidised LPG in the commercial sector,' she said. Ops Gasak was launched on May 1 to tackle the misuse and diversion of subsidised LPG cylinders, particularly involving medium- and large-scale industry players. The operation also targets illegal decanting activities where subsidised LPG was transferred into commercial or non-subsidised cylinders for resale or smuggling purposes. Ops Gasak would run until Oct 31 under the Supply Control Regulations (Amendment) 2021, which came into force on Oct 15, 2021.
